Add cities to the list of victims of the Great Disruption
Some of America’s most prosperous cities are also among the casualties of what I’m calling the first stage of The Great Disruption — the current financial crisis.
Charlotte, a middling Southern town built into a city by two money center banks, will see its world changed radically whether Wachovia is bought by Wells Fargo or Citigroup. At least one-fifth of its jobs are in banking, and these are high-paid corporate jobs with benefits. Virtually every advance in Charlotte, particularly its revived downtown, came from the leadership of Wachovia and Bank of America. Now half of that will be gone, and the claim to being America’s second-largest banking center.
I make a prediction: Bank of America will soon move its headquarters to New York. The decision will likely be camouflaged in language of "dual headquarters" or some such corporate claptrap. But BofA’s best and brightest will feel an increasing need to be in what’s left of America’s financial capital. After all, the men who built these powerhouses as a powerful, personal gift to Charlotte are retired.
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